Fund Transactions
During October 2020, the fund purchased a large block of Tashkent Vino Kombinati (TSE: TKVK) the largest consumer goods company in Uzbekistan and a leading producer of vodka, wine, beer, soft drinks, dried fruits and freeze-dried vegetables. We had been negotiating with the seller of the block for several months in order to secure an attractive price and ended up achieving a sizable discount from the initial asking price. With consumer spending at an early stage, we are excited to have acquired the block as TKVK now represents 9.2% of the fund.
Typically, when a country’s GDP per capita approaches USD 2,000, consumption begins to grow aggressively due to the compounding effects of wealth creation and rising incomes/salaries. Uzbekistan’s 2019 GDP per capita was USD 1,588, meaning it is still in the early innings (to use a baseball reference) of its secular consumption boom and we believe TKVK is the most leveraged listed equity through which to gain exposure to this theme.
For further viewing here are some interesting, relevant news links related to Uzbekistan:
Uzbekistan’s Zaamin to be 4-season touristic hotspot
Uzbekistan unveils extensive privatization programme
Subscriptions
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Best regards,
Scott Osheroff
CIO AFC Uzbekistan Fund